Hrvoje PAUKOVIC, Managing Director, Croatian Insurance Bureau discussed about what happened in Croatia last year on natural hazards terms: "The total estimated damages are EUR 16.9 billion, damages of the earthquake that hit Zagreb in March 2020 represent EUR 11.4 billion, which is about 60% of the annual state budget. The earthquake that hit us in December 2020 amounted to EUR 5.5 billion of damages. But what disappoints is the claims paid by the insurers. We paid claims immediately, resolve them and help a lot of people along with numerous donations to public hospitals, as well to the people. However, damages paid by April 2020 amounted EUR 50.4 million.
He added: "Significant portion of property in Croatia is not adequately insured or is not insured at all. The contribution of the insurers in compensation of damages arising from earthquake could have been more significant if a larger number of institutions/companies/citizens had adequate insurance coverage. When we compare insurance density in Croatia with the EU in terms of property, we can see a large discrepancy: on average, Croatia spends around EUR 50 per capita, while the EU standard is more than three times higher. The same situations go for health insurance, life and motor insurance. The ratio between premium and GDP in Croatia is 2,6% on the insurance penetration. This is the answer way the number of properties has not been insured proper."
Nicoleta RADU, CEO, PAID Romania has also commented on the Romanian level of insurance protections for NatCat: " Romania is one of the most exposed country to three catastrophic risks: earthquake, landslide and floods and Romanian Pool was setup to provide a simple insurance product to secure their homes against the risks. This product aims to be a social protection for the Romanian population, but also to take the burden of the state using public budget for indemnifying population in case of NatCat. This mandatory system is based on a public private partnership. The goal is to have all the Romanians protected with this insurance.
"At this stage we have only 20% of people insured. There are various explanations why achieving this goal of having a higher protection does not happened yet: a not satisfactory enforcement of the law, a lack of financial education, a lack of trust in insurance system. PAID's strategy is to reach 40% penetration in a medium term."
Alexandru CIUNCAN, General Director, UNSAR comment upon the fact that Romanians are too optimistic to consider NatCat insurance: "We should not try to change how we react, but we should try as industry to educate people in positive way, we should do our best in order to inform them better by explaining what are the products and tools they disposed in order to protect themselves."
"The last annual survey we have made in October 2020 showed that 59% of Romanians are concerned about fires, while earthquake sits on the second position with 54% and severe weather is the third risk which concern them. Also, there is a perception study that showed 74% of all participants were interested in buying a home insurance policy, in comparison with 71% in 2019. So, we can see increase in the perception towards household insurance. There were also, a number of increases at the end of 2020 in terms of gross written premiums even though they are marginal. The market is moving, but of course not to the phase that we would all wanted, " said Alexandru.
for the latest declarations of the speakers.